Amazon’s weight in S&P 500 Index is now bigger than the entire energy and materials sector combined.
S&P 500 Index EPS vs. U.S. Corporate Profits
This chart puts into perspective the wide divergence between S&P 500 Index EPS and U.S. corporate profits.
RHS – right hand side of the chat
NIPA – National Income and Product Accounts
WSJ: What elements of the Netflix culture are tougher to maintain now that so many employees are working from home?
Mr. Hastings: Debating ideas is harder now.
WSJ: Have you seen benefits from people working at home?
Mr. Hastings: No. I don’t see any positives. Not being able to get together in person, particularly internationally, is a pure negative. I’ve been super impressed at people’s sacrifices.
WSJ: It’s been anticipated that many companies will shift to a work-from-home approach for many employees even after the Covid-19 crisis. What do you think?
Mr. Hastings: If I had to guess, the five-day workweek will become four days in the office while one day is virtual from home. I’d bet that’s where a lot of companies end up.
WSJ: Do you have a date in mind for when your workforce returns to the office?
Mr. Hastings: Twelve hours after a vaccine is approved.
WSJ: I like that.
Mr. Hastings: It’s probably six months after a vaccine. Once we can get a majority of people vaccinated, then it’s probably back in the office.
This guide explores everything you need to know about mental models. By the time you’re done, you’ll think better, make fewer mistakes, and get better results.
In a famous speech in the 1990s, Charlie Munger summed up the approach to practical wisdom through understanding mental models by saying: “Well, the first rule is that you can’t really know anything if you just remember isolated facts and try and bang ’em back. If the facts don’t hang together on a latticework of theory, you don’t have them in a usable form. You’ve got to have models in your head. And you’ve got to array your experience both vicarious and direct on this latticework of models. You may have noticed students who just try to remember and pound back what is remembered. Well, they fail in school and in life. You’ve got to hang experience on a latticework of models in your head.”
Just when investors thought Masayoshi Son was reining in risk at SoftBank Group Corp., the Japanese billionaire’s foray into highly leveraged derivatives is giving them fresh reason to worry. SoftBank shares tumbled 7.2% on Monday in Tokyo, erasing about $9 billion of market value. The drop came after the conglomerate made massive bets on high-flying technology stocks using equity derivatives. What has alarmed shareholders is that Son appears to be using options to amplify his exposure to a corner of the market where valuations have soared and mercurial individual investors are playing an ever-greater role.